U.S. asset manager BlackRock (BLK) is buying credit firm HPS Investment Partners in an all-stock deal valued at $12 billion U.S.
In a news release, BlackRock said that the purchase of HPS will move it into the top ranks of private credit.
BlackRock is already the world’s biggest asset manager with nearly $12 trillion U.S. under management.
HPS founders Scott Kapnick, Scot French and Michael Patterson will lead a new private financing solutions business unit within BlackRock once the acquisition closes in mid-2025.
Once HPS is in its fold, BlackRock will manage nearly $600 billion U.S. of alternative assets. The deal is subject to regulatory approval.
BlackRock is undergoing a transformation to become a significant player in private assets that are coveted by pensions, insurers, sovereign wealth funds and wealthy individuals.
With HPS and its earlier acquisition of Global Infrastructure Partners, BlackRock has now purchased two of the largest alternative asset managers in the U.S.
HPS currently manages $148 billion U.S. of client assets, making it one of the largest independent managers in the private credit market.
Founded in 2007, HPS had been planning an initial public offering (IPO) prior to BlackRock offering to buy it. The IPO would have valued HPS at about $10 billion U.S., according to media reports.
With HPS, BlackRock’s alternative-investment business will be larger than Carlyle Group (CG) and begin to rival private-asset leaders such as KKR & Co. (KKR) and Apollo Global Management (APO).
The stock of BlackRock has risen 28% this year to trade at $1,020.11 U.S. per share.